Beginning this week, officials will implement a policy known as “compulsory unemployment,” otherwise identified as raising the minimum wage.
Effective Oct. 1, the minimum wage will increase in the provinces of Alberta, Manitoba, Saskatchewan, Ontario and Newfoundland and Labrador.
Alberta will experience the biggest increase in the minimum wage from $10.20 to $11.20. This is dangerous for the province as the economy has collapsed due to falling oil prices. Thousands of people have been laid off so with the minimum wage contributing to even further job losses, Alberta will suffer even more in the coming months.
Saskatchewan will experience an increase of 30 cents from $10.20 per hour to $10.50. Manitoba’s minimum wage is also going up 30 cents to $10.70 to $11.
Both Ontario and Newfoundland and Labrador are giving their minimum wage a boost of 25 cents. Ontario’s minimum wage will be $11.25, while the east coast province will have a minimum wage of $11.
Of all the regions of the country, however, the Northwest Territories maintains the highest minimum wage in the country with $12.50 per hour. Of course, the territory maintains a jobless rate of just under eight percent.
It seems Canadian officials need some economics lessons from the famous economist Milton Friedman:
It’s funny that companies always say that “let the market determine the price and everything will be ok” But the moment that they have to pay wages because they can’t get employees at the minimum wage they start begging the government to bring in foreign workers. Case in point Tim Hortens.